European stock markets close the week with losses due to fears in the banking sector

The main European stock markets closed the day -and with it the week- with declines of more than 1% weighed down by bank values ​​due to doubts about Deutsche Bankwhich has returned the fear of a possible contagion to the entire financial sector.

The Paris square fell 1.74%, that of Frankfurt 1.66% and that of London 1.26%. Milan lost 2.23% and Madrid 1.98%.

The European session opted for an intense downward trend after the German entity announced in the morning that it will repay 1,500 million euros in subordinated debt in May whose maturity was scheduled for 2028, which in turn increased the indicators on the risk of default on it.

In this context of fear of a possible contagion to the banking sector, the president of the European Central Bank (ECB), christine lagardedeclared this same Friday that the eurozone banking sector is “resilient because it has strong capital and liquidity positions”.

The European situation also moved to Wall Street and its indices opened with setbacks, although at the European close they moderated and began to change sign; In addition, the US PMI showed that the economy expanded in March when it was expected to go into contraction, which could encourage further interest rate hikes to cool the economy and inflation.

Also due to the fear of a tightening of bank credit, the euro fell 0.6% compared to the “green ticket”, to US$ 1,076 dollars; Brent crude subtracted 1.8% to $74.5 a barrel, and a troy ounce of gold fell 0.28% to $1,986.

The European markets seemed to recover the good tone this week after the purchase of Credit Suisse by UBSalthough the doubts this Friday about Deutsche Bank have once again clouded the outlook and reduced the accumulated gains.

Thus, in the weekly accumulated, Milan has added 1.56%; Paris 1.3%; Frankfurt 1.28%; London 0.95% and Madrid 0.84%. The Euro Stoxx 50 has advanced 1.61%. The interest on long-term German debt, a reference in the euro area, closed this Friday at 2.12% after subtracting seven basis points.

With information from EFE and AFP